Business Service Centers NAICS 561431, 561439

Feb 23, 2026 - Scrapped US Tariffs Signals Relief in Package Shipping

• The Supreme Court’s decision to strike down most of the Trump administration’s emergency-based tariffs has been hailed as a potential relief for businesses that handle imports and customer shipments, removing duties that had raised costs on a wide range of goods entering the US under the International Emergency Economic Powers Act (IEEPA). Those tariffs - some as high as 40% or more and applied to nearly every trading partner - had complicated pricing, logistics, and supply-chain planning for companies that depend on predictable import duties. With the ruling invalidating those levies, import costs may soften and administrative burdens lessen, although uncertainty remains about if and when firms might receive refunds for tariffs already paid and whether new tariffs under other legal authorities will take their place.
• US Customs and Border Protection (CPB) has collected more than $1 billion in duties from about 245 million low-value shipments since the Trump administration phased out the de minimis rule, which allowed imports worth $800 or less to enter duty-free with minimal oversight. The rollback started in May for shipments from China and Hong Kong and was expanded globally in August. CBP said the change recaptures revenue, levels the playing field for US businesses, and improves enforcement. The higher $800 threshold, raised in 2016, fueled rapid growth in cross-border e-commerce, benefiting companies like Shein and Temu while reducing work for customs brokers and limiting data available to regulators. CBP reports seizures of unsafe or illegal low-value goods have risen 82% since the policy shift. While significant, the $1 billion represents a small share of the more than $125 billion in tariffs collected in 2025, some of which face legal challenges.

• Recent changes in US import regulations and tariffs are creating significant disruptions for package shipping centers. Many packages now require formal customs clearance, increasing documentation requirements and processing times. UPS has reported surges in shipments lacking proper information, leading to delays, unexpected fees, and in some cases, disposal of packages. Misclassification of goods has also caused incorrect tariff applications. Consumers are facing surprise tariff bills, sometimes exceeding the value of their items, primarily due to the end of the de minimis exemption for packages under $800 in August 2025. These challenges strain shipping centers, slow deliveries, and are prompting some consumers to switch to alternative carriers like FedEx and DHL. Overall, the combined impact of tariffs and regulatory changes is putting considerable pressure on domestic package logistics, highlighting the very real effects of trade policies on everyday shipping and delivery services.
• The United Parcel Service (UPS) announced plans to lay off about 20,000 workers as the package delivery company struggles with tariffs, automation, and increased competition. The job cuts, along with the closure of more than 70 facilities, comes on the heels of UPS ending its 30 year partnership with Amazon and reducing its handling of the e-commerce giant’s shipping business by 50% by mid-2026. Even though Amazon is UPS’s largest customer with about $10 billion in revenue in 2024, the partnership is not profitable. Amazon has built out its own competing delivery infrastructure and delivered more packages than UPS in 2024. In addition, cargo from China to the US makes up about 11% of UPS international business. The Trump administration’s tariffs on that country, along with the elimination of the de minimus exemption on small packages, increases UPS’s volume of parcels subject to customs.